Trade the lender of Japan Intervention PlansPosted by Bynum Haastrup on June 1st, 2021 The Bank of Japan managed to get clear that it is ready to intervene in the markets as a way to curb the Yen strength. This may translate into a trading opportunity for the USDJPY when in conjunction with Technical Analysis. THE LENDER of Japan Intervention was the most interesting events in the foreign currency markets over the last couple of weeks. The Bank of Japan implied that they can intervene (sell the JPY) if the purchase price starts to fall below 85.00. check here of USDJPY is just about that area now, so if it makes another down leg then the BOJ may potentially intervene again. This should cause the price to post a dramatic rise. The BOJ intervened as a way to respond to concerns about the yen's rise. The intervention occurred on last Wednesday for the very first time in six years to knock the currency lower. Bank of Japan money market data indicated that the yen-selling could have amounted to1.86 trillion yen. This is the record amount that demonstrated to the market that the lender of Japan means business. This should definitely impact on the market's expectations concerning the Yen. Yen strength is hurting Japan's exports, which are the main driver of japan economy. From a technical perspective, the pair has posted a pullback and is now trading around a key support level denoted by Support S1 round the 84/84.50 area. Trade Signals is a buyer around these areas targeting the Resistance R1 area, round the 88.00 area.Like it? Share it! More by this author |